With carrying costs, repairs, and previous unknowns, I am now looking at approximately $65k as we are doing nearly everything ourselves (I own heavy equipment and previously had a contracting/landscaping business).

The rehab would be mainly cosmetic, floors, kitchen, bathrooms, paint.

Assets identified in this study include:Appliances: Oven/range, dishwasher, refrigerator, washer/dryer, microwaveElectrical and communication systems: TV connections and dedicated equipment outletsCabinetry and CountertopsDecorative light fixtures: Sconces, pendant fixtures, chandeliersInterior Finishes: Crown molding, wood panel wall covering, window treatments8.20% of the total depreciable basis was classified as 15-year class life.

We turned the 2 bedroom, 2,000 sq/ft home, to a 5-office, property with a kitchen, two bathrooms, a parking lot and a backyard.

-  How do you assess deductions for damage in a common area such as a kitchen? 

Example - I purchased an automotive shop with all the equipment intact at a bankruptcy auction for $117,000.

That is an interior heavy rehab, i.e. remodel kitchens and baths, new floors, fresh paint. 

The tax advantages of buying/holding gas stations are pretty great.Many of the components of gas stations including pumps, tanks, external parking areas, and other equipment are classified as either 5 or 15 year property so you can bonus depreciate a lot of it (minus the land value) and get significant deductions in year 1.With the current bonus depreciation rate at 60%, a $1 million gas station acquisition could still lead to $100K+ in year 1 deductions depending on the specifics of your deal.

Like when I didn't pull permits, I had to rip on the cabinets and tile and then abate asbestos that was under the kitchen floor tile. 

Note that most all lead inspectors will do dust swipes (Lead Safe tests), but not all have the equipment required to do Lead Free testing so be sure you're specific in what you ask for.